Bitcoin (BTC) experienced a significant downturn in price, reaching new lows of $64,522 on Bitstamp, as reported by TradingView. After hitting record highs, the cryptocurrency faced notable sell-side pressure, leading to lower lows and failed rebounds. The offloading trend intensified ahead of the eagerly awaited weekly candle close.
Popular trader Skew provided insights into potential zones of interest for bidders on major exchanges, focusing on levels between $60,000 and $64,000. Skew observed that the majority of the selling pressure originated from market selling, which was particularly noticeable since the $74,000 mark, with significant activity observed on platforms like Coinbase and Binance. However, Skew also noted some entities engaging in large dollar cost averaging (DCA) at the lows, contributing to short-term bounces.
Bitcoin’s bull market correction and market sentiment
Bitcoin’s latest correction marked a decrease of approximately 12% from its recent highs. Despite this downturn, optimistic market observers maintained positivity, citing ongoing buying activities from United States spot Bitcoin exchange-traded funds (ETFs), set to resume on March 18. Thomas Fahrer, CEO of crypto-focused reviews portal Apollo, expressed confidence in the market’s resilience, labeling the current situation as a potential “Bear Trap.” Fahrer highlighted the anticipated influx of liquidity from institutional sources, hinting at rumors of significant institutional wealth allocation to BTC in the coming months.
Potential for early-week comeback and futures gap concerns
With over 12 hours remaining until the weekly close, some market participants remained hopeful for a potential early-week comeback. However, attention also turned to the significant gap in Bitcoin futures, nearing $4,000. While Bitcoin’s price volatility continues to attract traders and investors, concerns about unfilled futures gaps linger, adding an element of uncertainty to short-term price movements.
Bitcoin’s recent price action has been characterized by heightened volatility and notable sell-side pressure following its surge to new all-time highs. Despite facing a correction of around 12%, market sentiment remains cautiously optimistic, buoyed by expectations of continued institutional interest and buying activities from Bitcoin ETFs. However, uncertainties persist, particularly regarding the potential impact of unfilled futures gaps and the broader macroeconomic landscape
